US Dollar Index (DX) Futures Technical Analysis – December 13, 2016 Forecast

December U.S. Dollar Index futures are trading slightly better in a lackluster trade shortly before the regular session opening. Volume and volatility are expected to come in below average as investors await Wednesday’s major Fed announcements.

Technical Analysis

The main trend is down according to the daily swing chart. However, movement shifted to the upside on Monday with the formation of a new two-day bottom at 99.49. The market formed a closing price reversal top at 101.82. This could have been sellers defending the main trend in an effort to hold the market in a range.

The main range is 102.12 to 99.49. Its 50% level or pivot is 100.81. This price is controlling the direction of the index. The short-term range is 99.49 to 101.82. Its 50% level or pivot is 100.66.This is price is also a potential downside target.

Forecast

Based on the current price at 101.135, the direction of the market is likely to be determined by trader reaction to the steep uptrending angle at 100.99.

A sustained move over 100.99 will indicate the presence of buyers. This could lead to a move into the downtrending angle at 101.31. This is a possible trigger point for an acceleration into the next downtrending angle at 101.11. This is followed by yesterday’s high at 101.82, a main top at 101.88 and the major top at 102.12.

A sustained move under 100.99 will signal the presence of sellers. This is followed by the two pivot prices at 100.81 and 100.66.

Taking out 100.66 could drive the market into the next uptrending angle at 100.24.

Watch the price action and read the order flow at 100.99 today. Trader reaction to this angle will set the tone for the day.